UAE Sets June 30 Deadline for Private Sector Emiratization Compliance

UAE’s Ministry of Human Resources and Emiratization mandates private sector companies with 50+ employees to meet Emiratization targets by June 30, 2025, or face financial penalties.

On May 20, 2025, the UAE’s Ministry of Human Resources and Emiratization (MoHRE) reiterated its call for private sector companies to fulfill their mid-year Emiratization targets by June 30. This applies specifically to companies with 50 or more employees, which are required to ensure at least a 1 percent increase in the number of Emirati citizens employed in skilled roles relative to their total skilled workforce. The push comes under the broader goal of achieving 10 percent Emiratization by 2026, as outlined in the UAE’s ongoing workforce nationalization strategy.

Failure to meet the mandated targets will trigger financial contributions, which will be levied starting July 1, 2025, when MoHRE begins compliance verification across establishments.

Emiratization progress and mid-year target expectations

The MoHRE’s enforcement timeline aligns with the progress already seen across the private sector. As of April 2025, over 136,000 UAE nationals had secured employment in private enterprises, spanning more than 28,000 companies. This figure exceeds the initial 2026 halfway milestone of 75,000 nationals, a benchmark largely driven by the NAFIS program (National Program for Emiratization), a federal initiative launched in 2021 to enhance the competitiveness of Emirati talent in private businesses.

Companies covered under the policy

The Emiratization policy, as amended, targets two main company categories:

• Enterprises with 50 or more employees are required to raise their Emirati skilled workforce by 2 percent annually, translating to a 7 percent target by June 2025, and 8 percent by the end of 2025; and
• Companies with 20 to 49 employees operating in 14 key sectors are required to employ at least two Emirati nationals in skilled roles by year-end.

The 14 sectors covered are finance and insurance, information and communications, healthcare, education, hospitality, construction, transportation, warehousing, manufacturing, real estate, social work, wholesale and retail trade, administrative and support services, mining and quarrying.

Financial penalties for non-compliance

The Ministry of Human Resources and Emiratization (MoHRE) has outlined a structured penalty matrix to enforce Emiratization compliance, as summarized below:

In all cases, MoHRE retains the right to suspend support for affected Emirati beneficiaries and demand refunds of disbursed support where non-compliance is proven. Starting July 1, 2025, MoHRE will audit companies and assess both quantitative results and the quality of jobs created. Employers must also ensure that Emiratis hired are registered with a social security fund and that contributions are paid regularly.

Skilled job criteria and compliance requirements

For a position to be eligible under the Emiratization quotas, it must qualify as a skilled job according to MoHRE’s standards. This includes roles offering a minimum monthly salary of AED 4,000 (US$1,089) and requiring at least a post-secondary qualification or an equivalent certification, which must be duly attested by the appropriate authorities.

Positions typically recognized as skilled include customer service, technical, administrative, and managerial roles. MoHRE has cautioned against superficial forms of compliance such as fictitious appointments, commonly referred to as “ghost jobs”, where Emiratis are employed only on paper without actual job responsibilities. The Ministry also monitors attempts to temporarily hire Emiratis around audit periods or designate unskilled positions as qualified roles merely to meet numeric targets.

Oversight mechanisms and legal enforcement

To ensure policy integrity, the MoHRE has deployed a digital field inspection system to detect violations, including fake Emiratization and record falsification. Between mid-2022 and April 2025, this system flagged over 2,200 companies engaging in non-compliant practices. Legal action has been initiated in these cases.

Further, MoHRE is seeking public and business employees to report violations through multiple channels, including the Ministry’s smart app, phone number 600590000 and the official website.

Incentives for compliant companies

While penalties enforce compliance, MoHRE also offers a set of incentives for companies exceeding Emiratization targets. Those who achieve exceptional results may gain access to the Emiratization Partners Club, which includes benefits such as:

• Up to 80 percent reduction in MoHRE service fees;
• Preferential access to government procurement opportunities; and
• Enhanced visibility for business development partnerships.

These rewards are designed to encourage a proactive approach to national employment targets, going beyond the minimum quotas.

Role of Nafis in supporting private employers

The NAFIS platform plays a foundational role in the implementation of the UAE’s Emiratization program. It functions as a digital bridge between employers and qualified Emirati jobseekers, offering a comprehensive suite of services to aid compliance.

Employers can access resources such as the Awareness Guidebook for Private Sector Companies and the Monthly Contribution Employer Guidelines, both of which clarify expectations under the current regulatory framework.

In addition, NAFIS provides access to real-time dashboards that allow companies to monitor their monthly Emiratization contributions and hiring progress. The platform also supports wage subsidies and financial assistance for Emirati candidates, thereby easing the onboarding process and reducing recruitment costs for participating employers.

Business implications and operational readiness

For private sector businesses, the June 30 deadline represents a crucial compliance deadline with both financial and reputational stakes. Firms must act promptly to verify whether their current workforce meets the required thresholds and initiate hiring where gaps exist.

Legal, HR, and compliance teams must collaborate to ensure that all job offers are aligned with the skilled employment criteria and that documentation, especially social security registration, is complete and accurate. Missteps in Emiratization are no longer just regulatory oversights; they now carry real monetary and operational consequences.

(US$1 = AED 3.67)

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